Victoria Regulatory News (VCP)

1 Feb 2008 08:41

Victoria PLC01 February 2008 Issued by Citigate Dewe Rogerson Ltd, BirminghamDate: Friday, 1 February 2008 IMMEDIATE RELEASE VICTORIA PLC ("Victoria", "Group" or "Company) Interim Management Statement and Trading Update The Board is pleased to report that the Group has continued to make goodprogress since issuing its half-year results for the six months ended 30September 2007. The Group is now confident that the result for the year ending 29 March 2008will be significantly ahead of the forecasts currently in the market for theCompany. INTERIM MANAGEMENT STATEMENTProgress across the Group in the quarter ended 29 December 2007 is summarisedbelow: AUSTRALIAOur Australian operation has continued with the strong performance delivered inthe first half-year, with December being a particularly strong month. As aresult, revenues in local currency, were 17.9% higher in the quarter endedDecember 2007 compared to the same period in 2006. A strong product portfolio and healthy forward order book sees our Australiandivision well placed as we move into the final quarter of our financial year. UKDespite the challenging conditions presented by the faltering UK economy andhousing market, Victoria Carpets enjoyed a solid performance in the run-up toChristmas. With new products introduced earlier in 2007 performing particularly well,coupled with Victoria's strong customer associations, the UK business delivereda good performance. This has resulted in revenues being ahead of thecorresponding period by 14.3%. IRELANDOur Irish operations enjoyed mixed fortunes in the quarter ended December 2007. Residential sales from Navan Carpets benefited from the strong product offeringand the seasonal uplift normally expected. With revenues up 8.5% on thecorresponding period last year, this business has delivered a better thanexpected result. Munster Carpets, our contract operation, however, failed to seeany of the previously anticipated uplift in the market. Overall, in local currency, revenues from Ireland were 1.1% up on the samequarter last year. CANADAProgress in Canada has been maintained with revenues in local currency up 8.6%on the same quarter last year. FOREIGN EXCHANGEThe relative weakness of Sterling in the third quarter has had a positive effecton the consolidated profitability of the Group. The Group continues to maintaina proportion of its borrowings in Australian dollars, which helps to act as anatural hedge against movements in the exchange rate. FINANCIAL POSITIONThere has been no other significant change in the financial position of theGroup since the half-year results announced in November 2007, save for theinformation contained in this Interim Management Statement. TRADING UPDATEBased on the Group's performance to date, the Board is confident that Victoriawill deliver a result significantly ahead of the current market forecasts forthe year ending 29 March 2008. The outlook in Australia continues to look positive and the Company intends toincrease capacity to meet market demand for its products. Conversely, the prospects in the UK may be impacted by the difficulties facingthe wider UK economy and consumer spending in particular. Similarly, in Irelandthe market conditions lack any clear visibility. The Group does, however, feel that its strong products, high levels of serviceand strength of management should enable it to weather market conditions duringthe coming year. Enquiries:Alan Bullock, Group Managing DirectorIan Davies, Group Finance Director Fiona Tooley, DirectorVictoria PLC Citigate Dewe RogersonTel: +44 (0) 1562 749640 Tel: +44 (0) 121 455 8370www.victoria.plc.uk Mobile: +44 (0) 7785 703523 This information is provided by RNS The company news service from the London Stock Exchange